Mark Zuckerberg will sell as many as 75 million Facebook shares, What it means for investors? Is it the time to press the panic button?
Wall Street stock market weekly technical analysis
CNBC News Summary:
- Mark Zuckerberg Co-founder Facebook will sell a large number of shares over the next 18 months in sales that would be worth between $6 billion and $12.8 billion based on the stock’s current price.
- The intention to sell between 35 million and 75 million shares was disclosed in a securities filing to the exchange late Friday.
- Proceeds of the sale will go “to fund the philanthropic initiatives of Mr. Zuckerberg and his wife, Priscilla Chan,” the filing said.
Mark Sells Facebook Shares and Going to sell more:
Mark aggressively selling his holding in Facebook shares last 3 months. And now he said He will sell 35 million and 75 million shares in a securities filing to the exchange late Friday. Facebook is the largest social media company in the world.
Source Credits: Nasdaq
Normally promoter selling company shares is a negative sign for the investors. Earlier he planned to create a new class of shares that would have kept him to have the majority of voting rights. The plan was sued by investors to scrap the plan. And the case was settled and the plan was scrapped.
Facebook Shares Technical Analysis:
Social networking giant Facebook Shares dropped 4.2% in last five days. If a stock drops more than 10% in a month then the stock will be in the bear grip. Now Facebook shares are falling due to the large selling by the co-founder Mark Zuckerberg. Now let us analyze the stocks for short-term trading.
Facebook shares are falling from trendline resistance. So we can except more downfall to the levels of $132. As per the weekly chart of the stock, it is not good for bulls to justify their stand. Facebook one of the large-cap stock showing some short-term reversal.
Facebook Shares Short Term Technicals:
In Hourly charts, Facebook shares at strong support around $160. So expect some shot of bounce in the short term. $164 and $165.60 are the strong resistance for the Facebook shares. Next support for the stock for the stock is around $155.